Malaysia Daily, Maybank KE (2014-04-25)

Daily 25 April 2014 RESULTS REVIEW Tenaga Nasional: Maintain Buy Better than expected  Shariah-compliant 2QFY14 core net profit of MYR1.12b was ahead of our expectation; reported net profit was again boosted by tax credits. Outperformance in core net profit was due to lower than expected tax rate (ex- one-off), IPP and fuel costs. Raising FY14 core earnings on lower tax rate, reiterate BUY with an unchanged MYR14.00 TP. Click here for full report » Malaysia Airports Holdings: Maintain Sell 1Q14 slightly ahead on lower taxes 1Q14 core net profit was slightly ahead ours and consensus. Revenue and cost items within expectations, with the only exception being a lower tax rate of 28.1% (vs 30% forecast). Maintain SELL as MAHB is expensive relative to peers. Click here for full report » COMPANY UPDATE Genting Malaysia: Maintain Buy Taking a bet on upstate New York GENM is likely to bid for a casino license in upstate New York. We leave our estimates unchanged pending further details. Maintain BUY and MYR4.74 DCF-based TP. Click here for full report » Technicals Miniscule profit taking activities The FBMKLCI declined by 2.07 points to close at 1,865.28 yesterday, while the FBMEMAS and FBM100 also closed lower by 15.60 points and 16.91 points, respectively. We recommend a �Buy on Dips� stance for the index. Trading idea is a Short-Term Buy on OKA with upside target areas at MYR1.87 & MYR2.23. Stop loss is at MYR1.50. Click here for full report » Other Local News MAHB: To have a new chief. Tan Sri Bashir Ahmad Abdul Majid, Malaysia Airports Holdings Bhd�s (MAHB) long standing MD, is expected to step down after 11 years at the helm of the airport operator. Sources said his successor is likely to be Datuk Mohd Badlisham Ghazali, who is currently CEO of Multimedia Development Corp. (Source: The Edge Financial Daily) AirAsia: To begin operations at klia2 on May 9. AirAsia Group will move all of its operations to the highly anticipated klia2 on May 9. However, all scheduled departures from the low-cost carrier terminal (LCCT) on May 8 will operate as normal. (Source: The Edge Financial Daily) EcoWorld: To propose rights issue, asset acquisitions. Eco World Development Group Bhd is likely to propose a major rights issue and the acquisition of property assets worth about MYR2b from private vehicles controlled by its major shareholders today. (Source: The Edge Financial Daily) UEM Sunrise: Lowers revenue growth target. UEM Sunrise Bhd has set a lower revenue growth target of 20% YoY for 2014 as compared to its 26% YoY revenue growth in 2013. (Source: The Edge Financial Daily) Carlsberg: Expects softer 2014. Carlsberg brewery Malaysia Bhd expects a challenging 2014 due to rising raw materials, operating costs and inflation, managing director Henrik Juel Andersen said on Thursday. The group will focus on rolling out its efficiency programmes to cushion the impact. (Source: The Star) Nestle Malaysia: Cautious on outlook for 2014. Nestle (Malaysia) Bhd is cautious on the outlook for 2014 due to rising inflation and weaker ringgit which could have an adverse impact on its business. (Source: The Star) Outside Malaysia U.S: Manufacturing powers rebound as orders rise. Orders poured into American factories in March, putting manufacturing at the center of a projected rebound in economic growth during the second quarter. Bookings for durable goods, those meant to last at least three years, increased 2.6% MoM, the biggest gain since November, a Commerce Department report showed. The advance was broad-based, with makers of computers, machinery and metals among those benefiting. (Source: Bloomberg) U.S: Jobless claims rise more than forecast in holiday week. Jobless claims increased by 24,000 to 329,000 in the week ended April 19, the most in a month, a Labor Department report showed. The adjustment during spring holidays is hard to quantify from year to year, a Labor Department spokesman said as the figures were released to the press. (Source: Bloomberg) Germany: Business confidence unexpectedly rose in April, signaling optimism that Europe's largest economy will withstand risks from tension in Ukraine to price weakness in the euro area. The Ifo institute's business climate index, based on a survey of 7,000 executives, advanced to 111.2 from 110.7 in March. (Source: Bloomberg) Japan: Tokyo inflation quickens to fastest since 1992 on tax increase. Tokyo's consumer prices rose 2.7% YoY in April, the biggest jump since 1992, pumped up by a sales-tax increase and a year of unprecedented stimulus from the Bank of Japan. (Source: Bloomberg)     Key Indices Value YTD (%) Daily (%) KLCI 1,865.3 (0.1) (0.1) JCI 4,891.1 14.4 (0.0) STI 3,283.9 3.7 0.8 SET 1,422.7 9.5 (0.1) HSI 22,562.8 (3.2) 0.2 KOSPI 1,998.3 (0.6) (0.1) TWSE 8,945.5 3.9 (0.1) DJIA 16,501.7 (0.5) 0.0 S&P 1,878.6 1.6 0.2 FTSE 6,703.0 (0.7) 0.4 MYR/USD 3.3 (0.2) 0.1 CPO (1mth) 2,701.0 2.8 0.1 Crude Oil (1mth) 101.9 3.6 0.5 Gold 1,293.4 7.6 0.7 TOP STOCK PICKS Buy rated large caps Price Target Tenaga 11.94 14.00 Genting Msia 4.20 4.74 HLBK 13.98 16.40 AMMB Holdings 7.20 8.50 Bumi Armada 4.00 5.00 IJM Corp 6.33 6.75 MPHB Capital 2.00 2.42